Commission VI urges government to protect SMEs from rising plastic prices
Jakarta (ANTARA) - Member of the House of Representatives Commission VI Firnando Ganinduto has reminded the government to promptly intervene in the market and protect micro, small, and medium-sized enterprises (MSMEs) from the recent rise in plastic prices.
According to him, the increase in plastic prices by more than double has pressured the profit margins of small business actors and placed them in a dilemma as they cannot easily raise selling prices without risking the loss of consumers.
“This is not just an ordinary price increase, but has entered the category of serious cost pressure for MSMEs,” said Firnando in his statement in Jakarta on Monday.
The politician from the Central Java 1 electoral district said that this situation must not be allowed to drag on without a concrete policy response from the government.
The Ministry of Trade, he said, needs to immediately take strategic steps to control prices and ensure the availability of raw materials in the domestic market.
“If not intervened soon, the impact could spread to a decline in the resilience of small businesses and potentially trigger informal sector inflation,” he stated.
The rise in plastic prices was triggered by disruptions in global supply and the petrochemical industry.
According to him, this phenomenon is a real form of cost-push inflation, where the increase in production input costs forces business actors to bear additional burdens.
Firnando added that the government needs to immediately achieve stability through several steps, such as supervising the distribution of raw materials and strengthening the domestic petrochemical industry to reduce dependence on global supplies.
He also emphasised that in the near term, accelerating the trade of imported raw materials must be carried out immediately by establishing direct cooperation with major supplier countries, so that supplies can quickly enter the country and price pressures can be dampened in a short time.
In addition, cross-ministerial coordination is needed to ensure that the policies taken are not only short-term but can provide sustainable protection for business actors if there are cases of stalled plastic raw materials, namely naphtha.
“The Ministry of Trade must be more active in maintaining market balance,” said Firnando.
He warned that MSME actors should not continue to bear the burden from global turmoil.
“Quick and precise intervention, including accelerating the import of plastic raw materials from plastic raw material producer countries, is very much needed to maintain price stability and business continuity,” he stated.